Will Fresnillo turn, or will it continue to rise towards 1027p?

• Breakout above 770p to trade 786p  (at time of writing).
• The ‘trend is your friend’. Will it continue down towards 1027p?
• Shares -23.4% from 2019 highs; +10.5% from 2019 lows; -8.4% year-to-date.
• Safehavens like Gold and their Miners in favour as risk appetite sours
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Fresnillo – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue to 1027p . You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price 786p (at time of writing). To do this, you need £2,000.

Let’s assume the Fresnillo trend continues up towards 1027p (+30%). Your profit would be £3000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Fresnillo breaks lower, falling 5% and it hits your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.